Processing Trees on farms

Transcription

1 Processing Trees on farms A literature review for the Rural Industries Research and Development Corporation by Ian Hanson and Mark Stewart RIRDC Research Paper 97/20

2 1997 Rural Industries Research and Development Corporation. All rights reserved. ISBN X ISSN "Processing Trees on Farms - A Literature Review The views expressed and the conclusions reached in this publication are those of the author/s and not necessarily those of persons consulted or the Rural Industries Research and Development Corporation. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole, or in part, on the contents of this report unless authorised in writing by the Managing Director of RIRDC. This publication is copyright. Apart from any fair dealing for the purposes of research, study, criticism or review as permitted under the Copyright Act 1968, no part may be reproduced in any form, stored in a retrieval system or transmitted without the prior written permission from the Rural Industries Research and Development Corporation. Requests and inquiries concerning reproduction should be directed to the Managing Director. Researcher Contact Details Professor Mark Stewart Ian Hanson School of Forestry School of Forestry The Unversity of Melbourne The Unversity of Melbourne CRESWICK VICTORIA 3363 CRESWICK VICTORIA 3363 Phone: Phone: Fax: Fax: stewart@forestry.unimelb.edu.au hanson@forestry.unimelb.edu.au RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: Fax: rirdc@netinfo.com.au Internet: Published in March 1997 ii

3 Foreword Australia has a trade deficit in its forestry products industry with items imported being of higher value than those exported. These products come mainly from native and plantation forests. It has been agued that farm forests could boost the industry s output and this report shows how they can be managed to maximise production of valuable lines. The study examines forests and plantations generally as a resource and looks at the future availability of wood. It surveys the extent of farm forestry plantings and the economic benefits of farm forestry. The report details processing of individual products such as sawn timber, posts, poles and piles, wood based panels, pulp, paper and paperbound and on-site timber processing. It takes a close look at current and future markets for forest products, both in Australia and internationally and gives valuable insight into marketing processes. The project is part of the Rural Industries Research and Development Corporation s Agroforestry and Farm Trees Program which encourages integration of sustainable and productive agroforestry within Australian farming systems. Peter Core Managing Director Rural Industries Research and Development Corporation iii

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5 Contents Foreword iii 1. Contents v 2. Executive Summary vii 3. Introduction 1 4. The Forest Resource Native Forest Plantations Production from the Resource Future Wood Availability 9 5. Farm Forestry in Australia The Benefits of Farm Forestry The Extent of Farm Forestry Plantings Native Forests Plantations Agroforestry General plantings The Economic Benefits of Farm Forestry Wood Processing The Australian Forest Products Industries Sawn Timber Production The Australian Sawn Timber Industry Hardwood Sawmilling Softwood Sawmilling Sawmilling Debarking Primary Sawing, Re-sawing, Edging and Docking Drying and reconditioning Post, Pole and Pile Production Preservation The Treated Post, Pole and Pile Industry Wood-based Panels Production Chipping The Wood-based Panels Industry Pulp, Paper and Paperboard Production The Pulp, Paper and Paperboard Industry 25 v

6 6.6. On-site Timber Processing Debarking and Chipping Sawmilling Drying Preservation Markets for Forest Produce International Markets Australia s Domestic Markets Sawn Timber Wood-based Panels Roundwood and Railway Sleepers Pulp, Paper and Paperboard The Marketing of Farm Forestry Produce Markets for Traditional Farm Forest Timber Products Marketing Problems Faced by Farm Foresters Potential Farm Forest Timber Products Sawn Timber Debarked and Chipped Pulplogs Debarked and Preservative Treated Posts, Poles and Piles References 44 vi

7 Executive Summary Australia s 40.7 million hectares of native forests includes 11.3 million hectares of private forest. All of this forest is potentially available for timber production, although a number of constraints reduce the area that is actually available to approximately 7.6 million hectares. The majority of Australia s 1.1 million hectares of plantation forests are publicly owned and managed by State and Territory forest agencies. There are, however, significant areas of privately owned plantations in a number of States. The owners of these plantations range from large forestry and investment companies to individuals such as farmers. Wood from Australia s native forests and plantations is the raw material for a number of products - sawn timber, wood-based panels, pulp and paper, posts, poles and piles. Reference to Australia s trade figures reveals that the volume of imports of these forest products slightly exceeds that of exports. The situation is far less balanced, however, when the value of these imports and exports is considered. Higher value-added sawn timber and pulp and paper products constitute the majority of imports, while low-value pulpwood (predominantly woodchips) is the major export. The result is that Australia incurs a significant trade deficit in forest products. It has been argued that timber from farm forests has the potential to supplement the products currently harvested from Australia s native and plantation forests, and to reduce the nation s current account deficit through import replacement and export. While the extent and nature of farm forest plantings in Australia is not well known, and their capacity to contribute to the expansion and diversification of the country s timber supplies is not well quantified, a number of recent surveys and analyses have thrown some light on the current state and future economic potential of farm forestry in this country. Recent surveys have suggested that the majority of landholders planting trees are motivated by environmental concerns and not by a desire to produce timber. Many of those with such a desire, however, have experienced difficulties in finding markets for their timber. These difficulties relate to the relatively small size, poor quality and inaccessibility of many farm forest plantings, and the distance of these plantings to markets. On-site processing has been suggested as a means of overcoming many of these marketing difficulties. Such processing has the potential to deal effectively with a current supply situation in which small, isolated forests have been unable to attract the interests of large-scale timber processors, and it has the potential to increase the returns to farm foresters by enabling them to provide a variety of value-added timber products to the wider community market. In these ways it negates, to an extent, the influence of size, inaccessibility and distance on the marketability of farm forest timber. There are a number of portable sawmills, mobile debarkers and chippers, and relocatable drying kilns on the Australian market that permit the on-site processing of vii

8 timber from farm forests. Portable sawmills and relocatable drying kilns can be used to produce seasoned sawn timber for a variety of applications and markets. Mobile debarkers can be used to debark non-durable posts and poles prior to on-site treatment with preservatives or sale to preservation plants. Portable wood chippers may permit the sale of woodchips to wood-based panel processing plants, hardwood and softwood woodchip exporters or pulp and paper mills. The steps involved in the manufacture of pulp and paper and wood-based panels, with the exception of debarking and chipping, are complex and require capital intensive processing facilities. Pulp and paper and wood-based panel manufacture is therefore beyond the reach of small-scale processors. These processors can, however, follow the processing stream for sawn timber and roundwood right up to final product stage because these products do not require industrial-scale processing facilities. This fact is of particular relevance to Australia because sawn timber dominates the wood product market in this country, in terms of volume of production, imports and consumption. There appears to be an opportunity for the replacement of Australia s substantial sawn timber imports with domestically produced sawn timber, including that produced by farm foresters utilising small-scale processing equipment. viii

9 Introduction It is widely accepted that increased farm forestry activity over the last two decades has provided numerous environmental benefits, such as soil protection from wind and water erosion, salinity control and improved water quality. It has also lead to an increase in the size of the timber resource that is available to the wood processing industries. Problems relating to the marketing of timber from small, dispersed and species diverse forests, however, have meant that many landholders have had to look towards activities that increase the value, and therefore marketability, of their timber. Such activities encompass on-site processing and the sale of value-added timber products. The aims of the following paper are four fold. (i) To present a review of the literature pertaining to; (a) the existing area of native, plantation and farm forest in Australia and the amount of timber currently and expected to be produced from this resource; (b) existing markets for native, plantation and farm forest wood-based products; and (c) technical aspects of the primary processing of native, plantation and farm forest wood. (ii) To identify those activities within the primary processing stream that can be undertaken by small-scale wood processors. (iii) To present a review of available small-scale wood processing technologies. (iv) Identify potential markets for farm forest timber that has been processed on-site. 1

10 The Forest Resource Native Forest Forest will be defined for the purposes of this paper as: including native forest with existing or potential stand height of 20 metres or more and cypress pine in commercial use regardless of stand height, but... [not including] plantations (ABARE 1990a; as cited by RAC, 1992a). This is the definition adopted by the Australian Bureau of Agriculture and Resource Economics (ABARE). It is a commercial definition and describes trees that are of sufficient stature to provide harvestable timber. It has been chosen because the paper is concerned primarily with wood production from Australia s forest resources. Based on this definition, the total area of native forest in Australia is estimated to be approximately 40.7 million hectares (as at 30 June, 1993). Of this, 29.4 million hectares (72%) are publicly owned and 11.3 million hectares (28%) are on private land (ABARE, 1995). Of the publicly owned forest, 6.6 million hectares (22% 1 ) are in National Parks or World Heritage areas, 12.1 million hectares (41%) are managed by State forest authorities for various uses, including wood production and 10.7 million hectares (36%) are vacant or leasehold Crown land (as at 30 June 1993) (ABARE, 1995). Figure 1 shows the total area of native forest in each state and in each ownership category. 1 Of the publicly owned forest 2

11 16 Australia (million ha) Area (million ha) NSW Vic Qld WA SA Tas NT ACT State Public 1 Public 2 Public 3 Private Figure 1: Native forest areas by ownership, as at 30 June Note: Public 1 native forest is forest land managed for multiple use including wood production. Public 2 native forest is crown land either vacant or occupied under lease on which wood harvesting is carried out under government control but is not reserved and managed for that purpose. Public 3 native forest is land on which wood production is excluded (National Parks etc.) (Source: ABARE, 1995). According to the Resource Assessment Commission (RAC) (1992a), the area of forested land held under state forest tenure has increased steadily since the 1940s in each state except Western Australia and Victoria, where reallocation of state forest to conservation reserves occurred during the 1970s and 1980s. As well as this, there has been an increase in the area of forest in conservation reserves in all states and territories (RAC, 1992a). The increase in area of both state forest and conservation reserves was achieved in all states except Tasmania by reallocation of other crown land that is forested. The area of privately owned forest has changed little (RAC, 1992a). The main native forest groups in Australia include rainforests and mangroves (8 per cent), Eucalyptus (60 per cent) and mixed woodland (the native pine and open forests) (33 per cent). The Eucalyptus resource in state forest is the principal source of raw material for the wood and wood products industry (RAC, 1992a). All public native forest outside conservation reserves and all private forest is potentially available for timber production, although a number of constraints reduce the area of land that is actually available. For publicly owned forest, these constraints include the inaccessibility of the resource, the economic feasibility of timber extraction, and the setting aside of specified areas of production forest under management codes of practice. The availability of privately owned forest for timber production is also influenced by accessibility and financial considerations, and by the intentions of the landowner (RAC, 1992a). 3

12 The gross area of production forest in Australia is approximately 33.4 million hectares. The net available area (that is, excluding areas that are inaccessible, that are uneconomic to log, and that are excluded from logging by management codes of practice) is approximately 22 million hectares. It may therefore be said that approximately 65 per cent of the gross timber production resource is potentially available for timber production. This figure, however, is subject to qualification as it represents the average across state forest (62 per cent), other crown land (64 per cent) and private forest (67 per cent), even though not all the potentially available private forest is used for timber production. As well as this, according to the National Association of Forest Industries, Crown lands are mostly low productivity forests leased for cattle grazing and only approximately 5 per cent of annual log removals come from these forests (RAC, 1992a). As previously stated, the major timber production tenure is state forest, and around 7.1 million hectares of state forest are available for logging (RAC, 1992a). Plantations Australia s plantation forests are generally confined to high rainfall areas along the eastern seaboard, the south-eastern region of South Australia and the southwestern region of Western Australia, although some plantations have been established in highland and tableland regions of New South Wales and Victoria (Stephens et al., 1993). Australia had approximately 1.1 million hectares of plantations - 959,000 hectares of softwood and 146,000 hectares of hardwood species - as at 30th June 1993 (ABARE, 1995). Over the past three decades, Australia has experienced a significant increase in the area of its plantation forest estate. The 1960s and 1970s were major growth periods for plantations in this country. Public plantations increased by 113 per cent in the 1960s and by 68 per cent in the 1970s, and private plantations increased by 119 per cent and 82 per cent respectively. The Commonwealth and State governments have actively promoted plantation development, through such initiatives as the Softwood Forestry Agreement Acts (1967 and 1972) and, more recently, the National Afforestation Program (Stephens et al., 1993). In March, 1993, approximately 70 per cent of all plantation forests in Australia were publicly owned, representing 73 per cent of the softwood and 44 per cent of the hardwood plantation estate (ABARE, 1995). Figure 2 shows the area of plantation forests in each state in both public and private ownership. 4

13 300 Australia ('000 ha) Area ('000 ha) NSW Vic Qld WA SA Tas NT ACT State Public softwood Public hardwood Private softwood Private hardwood Figure 2: Softwood and hardwood plantation areas as at 31 March, 1993 (Source: ABARE, 1995) Publicly owned plantations are predominantly managed by State and Territory forest agencies. The owners of private plantation forests range from large forestry and investment companies to individuals such as farmers (Stephens et al., 1993). Most of the softwood plantation resource owned by large forestry companies is in very significant areas, from around 4000 hectares to over 40,000. Investment company forests range from around 2500 hectares to nearly 20,000. Farm woodlot, pine-pasture, and agroforestry plantings are smaller and comprise the major part of the 22,000 hectares in holdings of 200 hectares or less (Sebire, 1984; as cited by Lewis and Ferguson, 1993). According to Hall (1990; as cited by Lewis and Ferguson, 1993), non-corporate private growers own some 17 per cent of the private area of plantation, or about 5 per cent of the total plantation area. Softwood plantations were established at an average rate of approximately 27,000 hectares per year in the period to The rate of establishment has decreased from a high of 35,000 hectares per annum observed in to approximately 20,000 hectares per annum in (ABARE, 1995). The predominant softwood plantation species is Radiata Pine (Pinus radiata). This species accounts for approximately 75 per cent of the total coniferous plantation area. Slash Pine (P. elliottii) and Caribbean Pine (P. caribaea) have also been extensively planted in subtropical regions of northern Australia (Stephens et al., 1993). Figure 3 shows the areas that are occupied by different softwood species in each State. 2 The last year for which figures are available for all Australian states 5

14 300 Australia ('000 ha) Area ('000 ha) NSW Vic Qld WA SA Tas NT ACT State Pinus radiata Pinus elliottii Pinus pinaster Pinus caribaea Araucaria spp Other Figure 3: State softwood plantation areas, by species, as at 31 March 1993 (Source: ABARE, 1995). The establishment of hardwood plantations has been slower than that of softwood plantations because of the abundance of native forest hardwoods and because of the rapid growth rates achieved by softwood plantation species. However, the rate of hardwood plantation establishment is increasing in view of the expansion programs of private forestry concerns and the uncertainty of guaranteeing long term supplies of pulpwood from publicly owned native forest (AFC, 1989). The average annual rate of planting of hardwood plantations over the period to has been 9800 hectares. The rate of establishment reached a high of 14,000 hectares per year in (ABARE, 1995). In general, hardwood plantations are based on eucalypts. The predominant species are Mountain Ash (Eucalyptus regnans), Tasmanian Blue Gum (E. globulus), Shining Gum (E. nitens), Flooded Gum (E. grandis), Blackbutt (E. pilularis) and Karri (E. diversicolor). Figure 4 shows the areas that are occupied by different hardwood species in each State. 6

15 60 Australia ('000 ha) Area ('000 ha) NSW Vic Qld WA SA Tas NT ACT State Eucalyptus spp Populus spp Other Figure 4: State hardwood plantation areas, by species, as at 31 March 1993 (Source: ABARE, 1995) Production from the Resource In , removals of roundwood from Australian forests amounted to 19.1 million cubic metres. Of this, 9.6 million cubic metres was hardwood (which is sourced predominantly from native forests) and 9.5 million cubic metres was softwood (which is sourced predominantly from plantations) (ABARE, 1995). Figure 5 shows the removals of both hardwood and softwood roundwood from Australian forests during the period As can be seen, the volume of softwood roundwood removed has increased dramatically since 1951 so that it now compares favourably with the volume of hardwood roundwood removed. This is due to a number of factors, namely: an increase in the area of softwood plantations; and a decrease in the area of native forest available for timber production. The importance of plantations can be appreciated when it is considered that, although the area under plantation forest was just over one million hectares in March 1991, or 3 per cent of forest area potentially available for wood production, approximately one third of the volume of domestic logs supplied to the processing sector originated from plantation forests (ABARE, 1992a; as cited by Stephens et al., 1993). 7

16 Volume ('000 m3) Year Hardwood Softwood Figure 5: Hardwood and softwood roundwood removed from Australian forests during the period (Source: ABARE, 1995) The roundwood that is harvested from Australia s forests can be divided into a number of major product classes, namely: saw and veneer logs; sleeper logs; pulpwood (for wood-based panel products and paper and paperboard); fencing materials; mining materials; poles and piles; and other materials. The proportion of roundwood harvested falling into each product class is given in figures 6 and 7. 8

17 2% 46% 51% 1% Saw, veneer and sleeper logs Pulpwood for wood-based panel products Pulpwood for paper and paperboard Other Figure 6: Hardwood roundwood harvested by product type, Note:. Other includes fencing materials, mining materials, and posts and piles. (Source: ABARE, 1995) 25% 4% 11% 60% Saw and veneer logs Pulpwood for wood-based panel products Pulpwood for paper and paperboard Other Figure 7: Softwood roundwood harvested by product type, (Source: ABARE, 1995) Future Wood Availability Numerous studies in recent years have dealt with the future availability of wood from Australia s forests. Summaries of these studies can be found in RAC (1992b) and in Cameron and Penna (1988). Most are based on the projections made by the Forest Resources Committee of the Australian Forestry Council in 1981 and revised by the same committee in 1989 (AIC, 1993). In estimating future availability of logs, AFC (1989) assumed that current methods, rates, economics etc. of harvesting and utilisation would continue, that 9

18 planned rates of plantation establishment would be realised and that no further large tracts of native forests would be alienated from wood production. AFC s (1989) estimates are given in Table 1. Table 1: Estimates of future log availability ( 000 m 3 ) Year Softwood Sawlogs 4,111 6,806 8,608 9,675 9,742 Other logs 4,953 5,076 5,159 5,393 5,404 Hardwood Sawlogs 4,061 5,327 3,514 3,626 3,494 Other logs 8,601 8,649 9,179 8,951 8,750 Totals Sawlogs 8,172 10,333 12,122 13,301 13,236 Other logs 13,554 13,725 14,338 14,344 14,154 Grand total 21,726 24,058 26,460 27,645 27,390 (Source: AFC, 1989) As can be seen, the overall availability of sawlogs is expected to increase by about 60 per cent over the projection period, with availability of softwood sawlogs more than doubling and hardwood sawlogs declining by 12 per cent. The availability of pulp logs is estimated to remain more or less constant (AFC, 1989). Farm Forestry in Australia The Benefits of Farm Forestry Before proceeding, it is pertinent to define what is mean by farm forestry. Inions (1995) definition of farm forestry will be adopted for the purposes of this paper. According to Inions (1995) farm forestry is: the practice of establishing, tending and marketing forest products grown on cleared agricultural land in such a manner and in such configuration as to be complementary to traditional agriculture. Numerous authors attest to the potential benefits of farm forestry, to Australia in general and farmers and local communities in particular (for example, Gordon (1996) and Bird et al., (1996)). Race and Curtis (1996a) state that: Farm forestry in Australia is increasingly promoted as a national strategy likely to deliver important benefits in terms of: expanding opportunities for commercial wood production, assisting the move to more sustainable agriculture and enhancing regional development According to Fargher (1996), farm forestry has the potential to: provide environmental services, such as improvements to water quality; 10

19 diversify agricultural enterprises; enhance agricultural production by providing shade and shelter; increase the sustainability of land management practices; contribute to land rehabilitation; enhance habitats and biodiversity conservation; and enhance aesthetic values in the landscape. Farm forestry could also contribute to the expansion and diversification of timber supplies and thereby reduce pressure on Australian and south-east Asian native forests (Race and Curtis, 1996b). Many authors make specific reference to the potential of farm forestry to supplement the products harvested from Australia s native forests (for example, Wilson et al. (1995)), while others stipulate that farm forestry can assist in reducing the nation s current account deficit through import replacement and export (for example, Race and Curtis (1996b) and Bird et al. (1996)). Fargher (1996) maintains that, once integrated into Australia s forest industries, farm forestry can reduce the need for industry capital to be locked up in land assets. According to the Commonwealth Government s Wood and Paper Industry Strategy (Commonwealth Government, 1995), plantations and farm forestry represent the best sources for future growth in the wood and paper industry. Inions (1995) lists five factors that he believes are responsible for the rapid escalation of farm forestry activity in Australia. These five factors are: environmental considerations; reduced agricultural returns; the stability of farm forestry returns; the need for the forest industry to find alternative land bases; and the availability of tax deductions. Bird et al. (1996) outline the various factors that will influence the adoption of farm forestry in the future, and identify the current constraints to the adoption of farm forestry enterprises. The Extent of Farm Forestry Plantings Fargher (1996) states that the soils, climate and landscape of more than 18 million hectares of cleared agricultural land are suitable for farm forestry. Of this, 5 million hectares (27 per cent) is highly suitable. There are no comprehensive statistics relating directly to the extent of farm forestry plantings in Australia. A number of recent surveys however provide a general picture of the state of farm forestry in Australia. 11

20 Native Forests As previously mentioned, private forests account for 28 per cent of the total area of native forest in Australia. According to the Australian Bureau of Statistics (1987; as cited by Loane, 1990), there were 1.2 million hectares of bushland, scrub, native forest and hardwood plantations on Victorian farms in About half of the forested area was in the higher rainfall eastern districts and about a third was in the drier western zone (Dymovsky and Kennedy, 1983; as cited by Loane, 1990). According to Wilson et al. (1995), approximately 81 per cent and 68 per cent of farms in the wheat-sheep and high rainfall zones 3 of Australia respectively, have some areas of native forests or woodlands. The national average area per farm of these forests and woodlands was 348 hectares in the wheat-sheep zone and 163 hectares in the high rainfall zone. Few farmers listed the main function of the forests and woodlands as being for the production of pulpwood, sawlogs and non-timber products for sale (Wilson et al., 1995). Plantations Farmers and other private owners not identified as industrial or investment companies accounted for 6 per cent of the softwood plantation area and 9 per cent of the hardwood plantation area in Australia in 1987 (AFC, 1989; as cited by Loane, 1990). According to Prinsley (1991) there were 60,000 hectares of private plantation on farms in Agroforestry The area under Agroforestry in Victoria in 1991 was approximately 570 hectares of which 78 per cent was hardwood and 22 per cent was softwood species. Of the total planted area, 20 per cent, 30 per cent, and 50 per cent respectively were for research, demonstration and production purposes (Wareing, 1991). Timber belts totalled 8.6 kilometres. Seventy-five per cent of their length consisted of hardwood species and 25 per cent consisted of softwood species. Their main purposes were for research and demonstration (Wareing, 1991). By the year 2020 it is estimated that up to 30,000 hectares of farmland could be planted to agroforestry in Victoria (0.3 per cent of agricultural land) (JAMC, 1991). A survey of 260 South Australian farmers active in tree planting in 1988 found that the average area planted was 6 hectares (about 1 per cent of the average property area of about 630 hectares). An average of 8 hectares was regenerated by other means and there was, on average, 61 hectares of native vegetation per property (Loane, 1990). The most common purpose of tree establishment was the provision of shelter. Other purposes included aesthetics, conservation, and erosion and salinity control. 3 Refer to Wilson et al. (1995) for definitions of these two agricultural zones. 12

21 Wood production accounted for only 7 per cent of the total number of purposes reported (Howett and Lothian, 1988; as cited by Loane, 1990). A survey (Prinsley, 1991) of farmer organisations, Landcare groups, and farm-tree groups revealed that approximately 26 per cent of Australian farmers had planted trees in the preceding two years. Most of these farmers were in Victoria and Western Australia. However, tree plantings were undertaken primarily for reasons other than timber production, such as the provision of shade and shelter. Only 5.8% of farmers were planting trees for pulpwood and sawlog production. This percentage, however, rose to 13.7% of farmers in areas which receive more than 650 mm rainfall per annum (Prinsley, 1991). ABARE s survey of land management practices indicated that 44 per cent of all broadacre and dairy farmers planted trees on their farms in that year (ABARE, 1992; as cited by Wilson et al., 1995). This survey revealed that farmers primarily planted trees for stock shelter and that a relatively small portion of farmers planted trees that year exclusively for wood production. ABARE s 1994 survey of trees on Australian farms found that as of 30 June, 1994, 35 per cent of broadacre and dairy farmers had planted tree belts and corridors, 14 per cent had planted tree blocks, 6 per cent had planted alley belts and 6 per cent had planted widely spaced trees. The average area of these plantings was 5 hectares for tree belts and corridors, 12 hectares for tree blocks and 10 hectares for alley belts. An average of 406 widely spaced trees were planted (Wilson et al., 1995). Planting trees to produce timber or non-timber products for sale was of relatively minor importance except in the high rainfall zones of Queensland and South Australia, where there were frequent plantings for the production of sawlogs, and Western Australia and Tasmania, where there were numerous plantations for pulpwood production. Twenty six per cent of farmers in Victoria s high rainfall zone planted trees for the sale or on-farm use of other wood products (Wilson et al., 1995). Nationally, 35 per cent of farmers planted at least 20 trees in the three years preceding the survey ( to ). This recent tree planting activity has been concentrated in Western Australia and Victoria. Tree belts and corridors have been the most common planting pattern (63 per cent), with an average of 657 trees per planting. Twenty per cent of recent plantings were in tree blocks, with an average area of 5.1 hectares per planting, while alley belts and widely spaced trees averaged between 3.8 and 5.7 hectares per planting and accounted for only 8 and 9 per cent of the plantings respectively (Wilson et al., 1995). The provision of shade and shelter was the most common purpose of recent plantings. The next most common reason was to rehabilitate or protect degraded land. Less than 2 per cent of farmers, in both the wheat-sheep and high rainfall zones, listed the production of timber and non-timber products as the main function of tree plantings. This finding is further reinforced by the modest percentage of farmers in these two zones planning to harvest their most recently established stand of trees (Wilson et al., 1995). 13

22 Nationally, the proportion of farmers who harvested trees during the period to was only 3 per cent (Wilson et al., 1995). General plantings The number of trees planted in 1988 in Victoria was estimated to be 411,000 for farmers, Farm Tree groups, and Landcare groups out of the total of 24 million (Loane, 1990). The Economic Benefits of Farm Forestry Calculations made by the Centre for International Economics indicate that once farm forestry reaches sustainable harvest levels the annual contribution to Australia is potentially in the order of $3.1 billion a year, including $2.5 billion worth of increased crop yields and $363 million in non-market community benefits. If all the shelterbelts responsible for these benefits to farmers and the community were harvested and the wood sold, the annual supply of hardwood sawlogs would triple and that of softwood pulplogs would increase by a factor of six. After 40 years, given the same input requirements for the different processing activities, the processed wood would be worth approximately $20 billion (Gordon, 1996). The value of timber obtained from the 30,000 hectares of agroforests expected to be planted in Victoria by the year 2020 was estimated in 1991 to be approximately $9 million per annum. This equates to a wood volume of 0.47 million cubic metres per annum and an average timber value of $18.40 per cubic metre (JAMC, 1991). It is assumed that this figure represents the value of the standing tree. It is a relatively low figure - comparable to the prices received for small diameter softwood sawlogs 4 ($17-20/m 3 ), D grade hardwood sawlogs ($15/m 3 ) and softwood and hardwood pulpwood ($7-17/m 3 and $8-15/m 3 respectively). It contrasts with the prices received for larger diameter softwood sawlogs 5 ($23-63/m 3 ), A to C grade hardwood sawlogs ($30-50/m 3 ) and various speciality timbers ($40-400/m 3 ) (Loane, 1993). Prices received for processed timber are even further removed. Green sawn hardwood can fetch between $350 and $450 per cubic metre, and kiln-dried sawn hardwood retails for between $1100 and $3000 per cubic metre (Race, 1994). A price range of between $300 and $600 has been quoted for farm sawn timber of various species in north east Victoria (Anon., 1993). There are clear opportunities for landholders to increase the value of their timber by engaging in on-site processing. This subject, as well as the general processes involved in the manufacture of a range of forest products, will be covered in the following section cm 5 > 20 cm 14

23 Wood Processing The aim of the following section is to present a brief overview of the Australian forest products industry and the processes involved in the production of sawn timber, wood-based panels and paper products. This will be done with a view to identifying those steps in the manufacturing process that can be undertaken by farmers and small-scale processors. The Australian Forest Products Industries The key forest product industries in Australia are: the roundwood and sawn timber industries, which produce sawn wood products and round and hewn timbers of all kinds; the wood-based panels industry, which produces veneer and veneer products, plywood, and particle and fibreboards; and the pulp and paper manufacturing industries, which produce wood pulps, and paper and paperboards of all kinds. These industries acquire wood from a variety of public and private sources (public old growth and new growth forests, public and private plantations, and private property primarily used for agricultural purposes). The present industry structures are characterised by extensive vertical integration (primarily in the pulp and paper sector) and a degree of horizontal integration by the larger sawn timber producers. In general, output from each forest products industry is dominated by a small number of relatively large producers (AIC, 1993). Sawn Timber Production The Australian Sawn Timber Industry The sawn timber (sawmilling) industry has two components, traditionally referred to as the log sawmilling sector and the re-sawing sector. The latter may be referred to more accurately nowadays as the sawn import sector. The sawmilling industry is the largest and most geographically dispersed processor of wood in Australia. There are approximately 1070 hardwood and 235 softwood sawmills in operation (RAC, 1992a; Commonwealth Government, 1995). Hardwood Sawmilling Hardwood sawmilling is the major exception to the concentration of production generally seen in the forest products industry. Although there are some large companies involved - such as Boral and Bunnings - hardwood sawmilling is fragmented and the average scale of production is small. Most hardwood sawmills are 15

24 labour intensive and independently owned. According to the Australian Industry Commission (AIC, 1993) there have been significant reductions in the number of hardwood sawmills in recent years. For example, Victorian sawmill numbers have fallen by 80 per cent over the last 20 years. In , approximately 67 per cent of Australian hardwood sawmills had an annual log intake of less than 3000 cubic metres (ABARE, 1995). Table 2 categorises sawmills on the basis of annual log intake. Table 2: Number of sawmills, by log intake. Hardwood Softwood Total Cubic metres per p p p p year < 3, ,000 - < 15, ,000 - < 45, ,000 - < 75, ,000 - < 100, > 100, Total 1,180 1, ,405 1,308 Note: p = preliminary (Source: ABARE, 1995) Variations in the physical dimensions and in the quality of Australian hardwoods have complicated the adoption of automated processing and contributed to fragmentation within the hardwood sawmilling industry. Other factors (for example, log allocation procedures and the availability of suitable logs) are also believed to have delayed rationalisation (AIC, 1993). Softwood Sawmilling Softwood sawmilling establishments are considerably larger, on average, than hardwood sawmills. In general, softwood mills are capital intensive and technologically advanced (RAC, 1992a). A small number of large producers, namely CSR, Boral, Brown and Dureau (owned by AMCOR), Australian Forest Industries (owned by Bowater Industries), SEAS Sapfor and plants owned and operated by the South Australian Government in the Mount Gambier region account for the bulk of Australian production (AIC, 1993). Sawmilling The basic steps involved in the production of seasoned sawn timber are outlined in Figure 11. Sawmills are characterised by the timber resource they cut, their size, the type of machinery used to break down the logs, and their degree of automation (Walker, 1993). As such, minor variations to the following order of operations do exist. Shaded boxes in Figure 8 represent those processes that lend themselves to on-site timber processing. 16

25 Debarking Debarking prior to sawing is often a necessity as bark can pick up sand and dirt during logging, transportation and handling in the mill yard. Its removal reduces saw tooth damage and wear. A reduction in wear results in longer time intervals between saw sharpening and consequently, higher rates of production, as well as reduced saw sharpening costs. It also allows better exposure of the log shape and any defects that may be present. The miller is in a better position to make decisions that lead to better sawlog conversion and grade recovery (FAO, 1981, Walker, 1993). Materials are more easily handled with reduced fouling of saws and transfer systems and clean, bark-free chips (from sawmill residues) and slab wood command a better price (Walker, 1993). Debarking can be carried out in the forest (in the stand itself or at log landings) or at the sawmill. One of the advantages of debarking in the forest is that the weight and volume of the timber is reduced for transport over land (Staaf and Wiksten, 1984). Debarking of logs at the mill also has its advantages, however. It can be easily integrated into what are often highly automated facilities and the bark can also be used as a fuel or sold for some other purpose. If there is no market for the bark, however, taking it to the mill simply increases transport costs and creates disposal problems (Wingate-Hill and MacArthur, 1991). 17

26 Hardwood Softwood Planting, tending, and maintenance Falling, sectioning and snigging Debarking Loading and transport Primary sawing, resawing, edging and docking Loading and transport Debarking and log sorting Primary sawing, resawing and edging Species not prone to collapse Kiln drying Air-drying Pre-drying and reconditioning Collapse-prone species Kiln drying Reconditioning Kiln drying Dressing Docking Docking Skimming to thickness and grading ` Dressing Rough sawn timber Dressed timber Rough sawn timber Steps that lend themselves to on-site processing Steps requiring capital intensive equipment Figure 8: Steps involved in the manufacture of hardwood and softwood sawn timber (Adapted from Thurlow, 1988). Staaf and Wiksten (1984) recognise three types of debarker, based on the technical means employed in debarking and describe the characteristics of each. These debarkers include knife, cutter and ring (rotor) debarkers (commonly employed 18

27 in softwood sawmills). They also describe trough debarkers, in which friction is used to separate the bark from the wood. Wingate-Hill and MacArthur (1991) investigated the use of various types of debarker for debarking small diameter eucalypts in the stand, at the log landing and at the processing plant, including compression, water hydraulic, drum, trough and chain flail debarkers. Primary Sawing, Re-sawing, Edging and Docking Primary sawing, re-sawing, edging and docking are processes enabling the progressive breakdown of logs into boards or larger dimension timber. The saws used include circular saws, bandsaws, frame or gang saws and chipper canters. The headrig, which is responsible for primary sawing, can consist of either a single or double arbor circular saw, a single or double edged bandsaw, a frame or gang saw, or a chipper canter. The choice of saw depends primarily on the size and uniformity of the logs being processed. Resaws, edgers and docking saws are commonly circular saws as these saws are cheaper and more robust than other alternatives (Walker, 1993). The cutting pattern employed in primary sawing is determined by the available saws, the log quality and size, market demand, and the skills of the sawyer. Three basic sawing patterns are recognised: live sawing ( sawing through and through ), sawing around and cant-sawing. These patterns are represented in Figure 9. (i) Live Sawing (ii) Sawing Around (iii) Cant-sawing Figure 9: Live sawing, sawing around, and cant sawing (Source: Walker, 1993). Live sawing involves cutting a small amount off one side to provide a level base for the log and then, after turning it onto this base, making a series of parallel cuts without any further turning of the log. This is the common method for large scale production utilising small sized logs of good form and few defects. It is not suited to the processing of defective logs and the production of varied sizes and qualities as a mixture of grain directions is obtained, resulting in a large amount of seasoning degrade (Bootle, 1983), and there is an increased incidence of large spike knots which lower the recovery of higher grades, particularly in softwoods (Walker, 1993). Sawing around involves altering the position of the log during sawing in order to avoid any major defects (Bootle, 1983). It is only suitable for large logs (>500 mm) (Walker, 1993), and, according to Bootle (1983) can involve back-sawing or quartersawing. Back-sawing aims for the production of boards with faces roughly tangential to the annual growth rings and at right angles to the rays. Such a sawing method 19

28 enables a greater speed of production, simpler milling (than quarter-sawing) and higher grade timber to be recovered from faulty logs (Bootle, 1983). Quarter sawing involves cutting as many boards as possible with their faces parallel to the rays. A minimum log diameter of approximately 450 mm small-end diameter is often required for quarter sawing (Waugh and Rozsa, 1991). Sawing can involve split-taper, which involves sawing parallel to the central axis of the log, and full-taper, involving sawing that is parallel to the cambium. The merits of each method are outline in Walker (1993). Drying and reconditioning Proper drying is a prerequisite for the efficient and economic utilisation of timber. It is carried out in order to: minimise degrade and problems such as staining, warping, cellular collapse, case hardening, honeycombing and checking; ensure that all shrinkage has occurred before the timber is used; obtain a better surface finish before gluing, painting, or polishing; make it less susceptible to decay; facilitate impregnation with preservatives; reduce transport costs; and encourage more efficient burning (dry wood is a much better fuel) (Walker, 1993; Groves, 1990; Bootle, 1983). There are two ways of drying timber - air-drying and kiln-drying. Air-drying involves the stacking of timber under shelter and allowing the timber to dry slowly, to a moisture content that is in equilibrium with the surrounding atmosphere (which can be as high as 20 per cent and as low as 6 per cent). This particular drying method suits many impermeable or collapse-prone species, larger sized timber members and items for exterior use which do not require a low moisture content (Thurlow, 1988). Airdrying is often required because kiln-drying of green, impermeable hardwoods takes too long and is uneconomic. In such cases, timber is first air dried to around the fibre saturation point 6 before being kiln dried (Walker, 1993). Predrying enables some control over the drying elements (relative humidity, air temperature, and the flow of air across the timber surface) and thereby decreases overall drying times (predrying times can be reduced by a factor of four or more compared to air-drying). Predriers usually consist of a large enclosure containing a number of parallel lines of timber stacks. They are provided with a fan and a source of heat which is provided on a continual basis (Bootle, 1983). Kiln-drying requires greater technical skill than air-drying and involves higher capital investment. It is, however, much faster than air-drying and accurate control of the drying elements reduces the amount of degrade in the stack. Many hardwoods can 6 Fibre saturation point is defined as the moisture content at which all the water in the cell lumen and intercellular spaces has been removed but at which the cell walls are still fully saturated (Walker, 1993) 20

29 be dried in three weeks or less (although some must be partially air-dried to fibre saturation point (25-30 per cent moisture content) beforehand) and most softwoods can be kiln-dried in less than a week (some in a few hours). Softwoods can be economically kiln-dried immediately after sawing (Bootle, 1983). Kiln-drying is essential if drying to low moisture contents (<18 per cent). Usually timber is dried to a moisture content of per cent for high quality end uses (Howell, 1993). Folkema (1995) recognises four types of kiln: conventional steam kilns, which are the standard kilns for the drying of softwood; dehumidification kilns; solar kilns; and vacuum kilns. There are also high temperature kilns, for the drying of plantation softwoods (especially thinnings), and microwave kilns. Steam reconditioning of both hardwoods and softwoods is carried out to remove some of the loss of cross section in boards due to collapse (an excessive form of shrinkage) (Rozsa, 1993). Post, Pole and Pile Production The steps involved in the production of posts, poles and piles are outlined in Figure 10. Planting, tending, and maintenance Falling, snigging and sectioning Debarking and bundling Air drying Loading and transport Treatment with preservative Steps that lend themselves to on-site processing Steps requiring capital-intensive equipment Figure 10: Steps involved in the manufacture of treated posts, poles and piles. 21